June 2022 Rental Market Snapshot

In summary…

• Vacancy issues continue: Since 10 August 2021 (Census night), the number of available rental properties has dropped by 23%.
• Sydney was the only metro capital to record consistent increases in the median rent month-on-month for both property types.
• More than a million properties (1,043,776) were sitting vacant on Census night (10 August 2021) out of the nearly 11 million dwellings.

Table 1: Median rent (apartments v houses) and price per room

Metro area	APARTMENTS	% change (monthly)	HOUSES	% change (monthly)	PRICE PER ROOM (all property types)	% change (monthly)
Sydney	$525	0.90%	$690	1.40%	$290	0%
Melbourne	$410	2.50%	$460	0%	$197	2.60%
Brisbane	$450	0%	$550	0%	$198	0.50%
Perth	$420	0%	$495	-1%	$175	2.90%
Adelaide	$380	0%	$485	1%	$175	­­­4.1%
Hobart	$395	-10.20%	$550	3.70%	$197	-2.90%
Darwin	$470	-0.40%	$620	3.30%	$210	1.90%
Canberra	$520	-1.80%	$675	2.20%	$266	4.30%
National median	$460	0%	$520	0%	$220	1.80%
Source: Rent.com.au 2022 property leasing data

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Price trends (June 2022)

How median rents are changing

It's been a challenging month. Renters are under increasing strain as cost-of-living pressures bite country-wide, and they face up against rent rises. And as the cost of basic living essentials increases, the number of affordable homes is only getting lower. It's not just a matter of 'moving elsewhere,' either. The lack of affordable properties in both city and regional areas is making sure of that.

City and regional areas report high competition levels as affordability worsens across Australia. It's a harsh combination of high demand meeting low vacancy rates and escalating prices, creating a tough market for renters to navigate. The number of homes available to rent has been decreasing since the pandemic's start. Since the Australian Bureau of Statistics took its Census back in August 2021, there are 23% fewer available rentals across Australia. Victorian vacancies are down 32%, Queensland 27%, and New South Wales 21%. These numbers look less intensive month-on-month (Northern Territory and Western Australia are currently worst affected, down 4.9%), but the situation remains challenging.

More than a million properties (1,043,776) were sitting vacant on Census night (10 August 2021) out of the nearly 11 million dwellings. They're a mix of second homes, empty investment properties and gig-economy holiday rentals, prompting thought to encourage property owners to return these homes to the rental pool to relieve some of the current rental pressure.

As high demand and low vacancy combine, prices are also increasing across many parts of Australia. Higher mortgage interest rates could also impact affordability as some landlords seek to increase rents to cover costs. So what's being done? Newly instated Prime Minister Anthony Albanese has pledged to build 20,000 social housing properties over the next five years as part of a $10 billion program. Caps on short-term rentals have been introduced in popular locations to help free up rentals for tenants. Renters are also being encouraged to consider buying a home with the rollout of the government's shared equity scheme, Help to Buy.

Looking at June's median rent data, the most affordable metro capital was Adelaide, where apartment rents were $380 a week. Sydney was the only metro capital to record consistent increases in the median rent month-on-month for both property types.

What will a room in a rental cost me?

The price per room metric provides an alternate perspective on the cost of renting space within a property in Australia. Apartment rooms cost 16% more on average to rent in June 2022 than they did 12 months ago, with the steepest changes seen in Hobart (up 41.9% to $305/week), Melbourne (up 18.9% to $267) and Perth (up 12.8% to $253/week). House costs were also up, year-on-year, with an average of 7.8% across the board.

Melbourne apartments have become more expensive for the first time in since June 2021, rising 18.9% annually. The most significant change was seen in Darwin, with costs up 17.8% to $207/week. A room in a Canberra apartment will set renters back $347/week (up 6.9%) - and the most expensive of all metro areas this month.

Table 2: 12-month change in price per room (Apartments versus Houses)

APARTMENTS	HOUSES
Metro area	Price per room in Jun-22	Annual change from June 2021	Price per room in Jun-22	Annual change from June 2021
Sydney	$325	12.1%	$226	9.7%
Melbourne	$267	18.9%	$153	9.5%
Brisbane	$260	13%	$166	8.7%
Perth	$253	12.8%	$153	5.7%
Adelaide	$200	8.1%	$160	9.1%
Hobart	$305	41.9%	$190	3.6%
Darwin	$225	7.1%	$207	17.8%
Canberra	$347	6.9%	$216	9.5%
National median	$290	16%	$172	7.8%
Source: Rent.com.au 2022 property leasing data

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How are the regions faring?

Record-low vacancy rates aren't just being seen in the metro areas. Strong population growth in Australia's regions and greater housing demand for detached houses due to a desire for a better lifestyle have been contributing factors.

In June, regional rents lifted slightly by 1.1% to $460 weekly. Regional renters have needed to dedicate a higher proportion of their incomes towards rent than their capital city counterparts, which seems unlikely to change in the immediate future. Much of the regional growth has been in the areas adjacent to the major capital city boundaries.

Regional Queensland led the pace of growth in June 2022, recording a month-on-month increase of 4.2%. Queensland was one of just two states to see prices rise. Despite a 6.5% fall in weekly rent, the Northern Territory remains the most expensive across Australia at $500 a week, compared to South Australia at $330 a week.

Table 3: Regional rents in June 2022

State/Territory	Jun-22	% change from May 2022
New South Wales	$495	1%
Victoria	$390	0%
Queensland	$490	4.2%
Western Australia	$450	0%
South Australia	$330	0%
Tasmania	$420	0%
Northern Territory	$500	-6.5%
Aus. Capital Territory	n/a	n/a
National median	$460	1.1%
Source: Rent.com.au 2022 property leasing data

How long are rentals taking to lease? ⌛

Rent.com.au's average time on market measure is designed to explain the movement in median rents across Australia. The 17 median days to lease a property in Adelaide in May was 24% slower than in May - and the most significant change to time in market for both property types across the board.

Melbourne apartments stayed on market longest of all property types in June, averaging 24 days on Rent.com.au before leasing. Apartments saw some increased activity, with this property type moving quicker in Brisbane (5% faster month-on-month to 12 days) and Adelaide, 1% faster to 14 days.

APARTMENTS	HOUSES
Metro area	Jun-22	MONTHLY change from May 2022	ANNUAL change from June 2021	Jun-22	MONTHLY change from May 2022	ANNUAL change from June 2021
Sydney	20 days	1% slower	31% faster	21 days	4% slower	2% faster
Melbourne	24 days	No change	43% faster	21 days	No change	19% faster
Brisbane	12 days	5% faster	31% faster	14 days	6% faster	2% faster
Perth	19 days	4% slower	12% faster	16 days	3% slower	16% faster
Adelaide	14 days	1% faster	28% faster	17 days	24% slower	1% faster
Hobart	17 days	19% slower	1% slower	20 days	16% slower	7% faster
Darwin	18 days	1% slower	2% faster	20 days	16% slower	20% slower
Canberra	19 days	13% slower	8% slower	20 days	27% slower	18% slower
Source: Rent.com.au 2022 property leasing data

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